Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Data Centres: Boom and Backlash
4AUG

Mills vetoes Maine moratorium; House override fails

3 min read
10:53UTC

Governor Janet Mills vetoed Maine LD 307 on 24 April; the House sustained the veto 72-65 five days later, then Mills signed an executive order creating an advisory council instead.

IndustryDeveloping
Key takeaway

Mills's veto closed the state-legislature route and pushed the consent fight one tier down.

Governor Janet Mills vetoed Maine LD 307 on 24 April 2026, killing what the state legislature had passed a fortnight earlier as the first US statewide data-centre moratorium. The Maine House voted 72-65 on 29 April to override the veto, short of the two-thirds threshold needed. Hours later, Mills signed an executive order creating the Maine Data Center Advisory Council in place of the moratorium her own party had drafted.

Mills said she would have signed the bill had it carved out the $550 million Androscoggin Mill redevelopment in Jay, an 800-job construction project on a derelict pulp-mill brownfield site. The carve-out was rejected by the bill's sponsors, who treated it as the thin end of a wedge that would gut the moratorium for any project labelled economic development. The veto turned that argument into a counter-factual.

The pattern this exposes is one Good Jobs First has been tracking through 2026: state-level moratorium bills meet executive resistance because governors weigh community concerns against economic-development logic and almost always come down on the side of construction jobs. City councils, utility boards, and zoning judges face no comparable counter-pressure. Within a single calendar week of the override failure, three Northern Virginia jurisdictions, one Pacific Northwest city, one Ohio town, and one Michigan utility authority all moved against new data-centre capacity while Augusta, Maine could not. Maine's veto did not stall the moratorium movement; it pushed it to a tier the executive veto does not reach, where bans are faster, narrower, and harder to challenge than their statewide cousins.

Deep Analysis

In plain English

Maine's legislature passed a law in April that would have put a temporary stop on new large data centres in the state while officials worked out better rules for them. Governor Janet Mills rejected the law (this is called a veto), and the legislature tried to override her but fell seven votes short. Her reason: a $550 million plan to turn an old paper mill in the town of Jay into a data centre would probably have been blocked, and she did not want to lose that investment. She created an advisory group instead, but it has no power to stop any projects. The episode shows a recurring pattern across the US: state legislatures can pass moratorium laws, but governors tend to side with the economic argument.

Deep Analysis
Root Causes

The veto reflects a structural asymmetry in how governors calculate moratorium risk. The Androscoggin Mill in Jay, Maine, is a 550,000 square-foot former paper mill that had been vacant since 2020; a data centre developer had tabled a $550 million redevelopment commitment.

Mills framed the veto as protecting that specific deal, not as opposing moratorium policy in principle. That framing reveals the core structural problem: a moratorium's costs are immediate and named (one project, one employer, one town), while its benefits are diffuse and probabilistic (grid stability, community amenity, water security across future projects).

The 72-65 override vote is also structurally significant. A two-thirds majority requires coalition discipline that moratorium supporters did not achieve, partly because Maine's rural caucus contains legislators whose districts depend on the exact economic diversification that data centres nominally represent. The state legislature arithmetic on these bills consistently produces narrow majorities that fall short of override-proof margins.

What could happen next?
  • Precedent

    The Androscoggin Mill veto creates a replicable developer playbook: anchor a moratorium debate to a named investment large enough to force a gubernatorial economic calculation, making the governor the effective permit authority rather than the legislature.

  • Consequence

    The advisory council model Mills adopted may spread to other states facing moratorium bills, substituting toothless review bodies for enforceable freezes and extending the planning-rules gap that moratorium legislation was designed to close.

First Reported In

Update #2 · Maine veto, Seattle freeze, $725bn capex

Maine Morning Star· 6 May 2026
Read original →
Different Perspectives
Chilean data-centre developers
Chilean data-centre developers
Seven projects, one linked to Google, asked SEA this month for rulings that they fall outside full environmental review; four declared diesel-storage volumes just under the review-triggering tonnage, mirroring the mechanism Alto Jahuel used in July. The clustering suggests the threshold is being engineered, not sized to need.
An Coimisiun Pleanala
An Coimisiun Pleanala
Ireland's planning appeals body refused the €1.5bn Killala data centre on 17 September, overturning Mayo County Council's 2025 grant for lack of a fixed grid-connection agreement and no corporate renewable power-purchase agreement. The ruling makes matched-power evidence, not planning consent alone, the deciding factor.
Housing Assembly and Foxglove
Housing Assembly and Foxglove
The two groups' 6 August appeal, filed through the Legal Resources Centre, kept Cape Town's approval of Equinix's data centre suspended through this window over missing water, emissions, noise and diesel-generator data. Deputy Mayor Eddie Andrews confirmed on 20-21 September that the suspension holds.
Brazil (President Lula, signing Redata)
Brazil (President Lula, signing Redata)
Lula signed Lei 15.504 on 15 September, creating the Redata tax programme and keeping the Senate's water cap with no veto, while Aneel authorised Scala's AI City to join the national grid from January 2028. Brazil is recruiting capacity other markets are now turning away.
Aragon regional government (Eva Valle)
Aragon regional government (Eva Valle)
Aragon's economy chief Eva Valle said on 11 September that Spain's draft decree, requiring 80% hourly-matched renewables via a 10-year power-purchase agreement, is unmeetable by any project and threatens Blackstone, Azora and Microsoft builds already under way. Aragon holds 3,600 MW of granted grid access against 108 MW built.
Texas Governor Greg Abbott
Texas Governor Greg Abbott
Abbott ordered TCEQ on 21 September to halt every pending data-centre permit until projects pay their own way and complete ERCOT and Texas Water Development Board audits. Texas built the country's most permissive data-centre market; freezing it signals even that market has hit its grid limit.